Profit margin F12 for Hourly Employees

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nickscarcare
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Profit margin F12 for Hourly Employees

Post by nickscarcare »

I am wondering, we just hired a guy and only pay him straight hourly. When on a work order and I hit f12 for profit, the labor results there are for the charged hours, and not the actual hours he worked on the vehicle. Should this not show the actual hours as that is the time he has in it and what it costs me to have him work on it.
Some people try to turn back their odometers. Not me, I want people to know why I look this way. I've traveled a long way, and some of the roads weren't paved.

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Silky7
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Re: Profit margin

Post by Silky7 »

Nick,

It just looks like you need to alter the Pay hours. Take this simplified case. I set labor to $100/hr even, and the tech to $20/hr.
Note, I charge 1.5 hours, but if it only took him 1 hour, I set his Pay and Actual to that one hour.
Note, I charge 1.5 hours, but if it only took him 1 hour, I set his Pay and Actual to that one hour.
2020-03-06 14_45_24-Labor Item - EDIT.png (18.7 KiB) Viewed 6618 times
My check profit is correct:
2020-03-06 14_46_29-Profit Snapshot.png
2020-03-06 14_46_29-Profit Snapshot.png (15.46 KiB) Viewed 6618 times
However, if I forget to adjust his Pay/Actual, then he will be paid to match the Charged Hours:
2020-03-06 14_47_02-Profit Snapshot.png
2020-03-06 14_47_02-Profit Snapshot.png (15.42 KiB) Viewed 6618 times
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ricmorin
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Re: Profit margin

Post by ricmorin »

That's right. For hourly techs make the pay hours the same as actual. The profit wheel is looking at pay hours.
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nickscarcare
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Re: Profit margin

Post by nickscarcare »

In the pay, I put what is charged for the job, but actual is the time it took him to do the job. So say it is a 3 our job and it takes him 4 hours, I have 3 in the pay column, and 4 in the actual. Otherwise it would not track his proficency. Is that not correct?
Some people try to turn back their odometers. Not me, I want people to know why I look this way. I've traveled a long way, and some of the roads weren't paved.

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Re: Profit margin

Post by ricmorin »

For hourly employees you always have pay and actual the same number if you want accurate F12 profit calculations. There is no proficiency calculation, but rather Productivity, Shop Efficiency and Tech Efficiency. These appear to be designed around flat rate. For 'proficiency', look to Productivity or Shop Efficiency for your value. These will be the same. Tech Efficiency in this case will always be 100%.
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
Motorcar Alternatives, LLC
603-622-6434 x203
www.motorcaralternatives.com

I find my life is a lot easier when I use Special Orders
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nickscarcare
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Re: Profit margin

Post by nickscarcare »

So there is no report to track that. I would think there should be a way to track especially to see which jobs the tech is taking longer at.
Some people try to turn back their odometers. Not me, I want people to know why I look this way. I've traveled a long way, and some of the roads weren't paved.

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Re: Profit margin

Post by ricmorin »

There is a report. Technician Productivity report. You simply look at the values from a different angle when it's an hourly employee. As I stated, that existing report was likely designed with flat rate in mind. ALL my employees are hourly and I easily use that report every week.
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
Motorcar Alternatives, LLC
603-622-6434 x203
www.motorcaralternatives.com

I find my life is a lot easier when I use Special Orders
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Re: Profit margin

Post by nickscarcare »

Ok yes that is the report I have been using. So the profit manager f12 will be the only one that is off then, correct, or will this report be slightly off too.
I never had a full time tech that we used it for just lube guys. Just trying to figure the stuff all out. Thanks
Some people try to turn back their odometers. Not me, I want people to know why I look this way. I've traveled a long way, and some of the roads weren't paved.

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Re: Profit margin

Post by ricmorin »

If you keep Pay and Actual hours the same in all labor items for your hourly employee, the F12 profit analyzer will be accurate. The report is accurate as well, you are just looking at a different column for 'proficiency' with the hourly employee.
Ric Morin - Volunteer Forum Moderator, Shop Owner, ASE Master L1
Motorcar Alternatives, LLC
603-622-6434 x203
www.motorcaralternatives.com

I find my life is a lot easier when I use Special Orders
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